‘Neutral’ rating on property sector stays

The research house said year-to-date, sales by most developers under its coverage have been strong, with Eco World Development Group Bhd and Sunway Bhd already surpassing their initial sales targets while Sime Darby Property Bhd and S P Setia Bhd are likely to surpass sales targets by the fourth quarter of this year.

KUALA LUMPUR: Kenanga Research has maintained a “neutral” call on the property sector, noting, however, that it is still plagued with affordability, policy and oversupply issues.

“We feel the sector still lacks sustainable earnings visibility and growth to justify a re-rating in valuations,” it said.